As initiatives around the gender and CEO pay gap increase, organizations are looking for ways to make quicker advances when it comes to promoting fair and transparent compensation processes. What if artificial intelligence (AI) and machine learning (ML) could make inroads to tackling these complex issues?
beqom CMO, Tanya Jansen, gave her thoughts to Fast Company on how predictive analytics can eliminate unconscious bias from compensation.
AI based on a variety of rules including education, experience, certifications, and more can make compensation more fair and help businesses move closer to closing pay gaps.
“Specifically, AI can help solve gender pay gaps and the CEO-to-worker pay gap, in which pay ratios of Fortune 500 companies range from 2:1 at the low end to nearly 5000:1 at the high end.”
— Tanya Jansen, CMO, beqom
Although pay is the driving force of these recent initiatives, happiness in your workforce doesn’t come from paying your employees more. It comes from making sure that they understand that their reward is fair. If the use of AI-driven compensation technology supports organizations with the knowledge that any pay decisions they make are fair, this will promote loyalty and recognition—leading to an increase in retention, and improvement in performance.